Touted new law aside, financial literacy in NJ middle schools isn't new

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Public officials hailed a New Jersey law signed last week that requires financial literacy lessons for middle school students starting in September as a creative new way to teach money management and life skills to youth.

Here's what went unnoticed: The requirement has already been in place — for years.

Under existing state education standards adopted in 2014, middle school students must learn specific topics in money matters and personal finance by eighth grade.

The law signed last week calls for lessons on budgeting, savings, credit, debt, insurance, investment and other issues associated with personal finance. Lt. Gov. Sheila Oliver, who signed the bill in Gov. Phil Murphy's absence, said it is "a skill that must be a necessary part of our educational curriculum" and will set up students for "success in life."

The current standards, which define what students must learn at grade level, already include and go beyond what's described in the new law.

So what will change in the classroom?

The key difference is that the new legislation requires instruction in each middle school grade, while the existing standards say such subjects should be covered "by the end of grade 8" so schools could have given lessons over one, two or three grades, said Mike Yaple, a spokesman for the state Department of Education.

The new law also calls for the Department of Education to offer instruction resources if districts want help.

The law takes what's in practice and "sets that in statute," Yaple said. So if the state were to change its standards, the requirement would remain.

Assemblywoman Angela McKnight, D-Hudson, one of the bill's primary sponsors, said millennials' financial struggles, including student debt, were a key factor behind the bill.

"They struggle with managing their money and really having a good grasp of financial literacy and banking," she said in a statement. "Such obstacles, combined with the high cost of living and a pattern of not completely paying off credit card balances monthly, can lead to financial stress.

“While there are financial literacy standards in place for middle school students in New Jersey, this bill reinforces such education by providing a uniform curriculum with examples, demonstrations and sample instructional materials that school districts can use," McKnight said.

The state Board of Education adopted the financial literacy requirements in 2014 as part of its 21st-Century Life and Careers standards, setting goals for students at different grade levels to become financially literate and make sound career choices.